India Surpasses Japan as Fourth-Largest Economy

India has surpassed Japan to become the world's fourth-largest economy, with a gross domestic product of $4.18 trillion, according to a recent government economic review. The announcement, released late last week, positions the country on track to overtake Germany and claim the third spot by 2030, when its GDP is projected to reach $7.3 trillion.

The United States holds the top ranking with an economy valued at $29.18 trillion, followed by China at $18.74 trillion. India's ascent reflects its status as the fastest-growing major economy, fueled by robust domestic demand and structural reforms. Real GDP expanded by 8.2 percent in the second quarter of fiscal year 2025-26, marking a six-quarter high and an increase from 7.8 percent in the first quarter and 7.4 percent in the final quarter of the prior year. Officials attributed this momentum to strong private consumption and resilience against global trade disruptions.

While the figures mark a significant leap from India's $3.9 trillion GDP in 2024, as estimated by the International Monetary Fund, formal confirmation awaits the release of final annual data in the first half of 2026. The IMF has projected India will overtake Japan...